Will Leasing a Car look like outstanding debt on my credit history?

[macticous]

I am thinking of leasing a car but am not sure if the amount that I will eventually pay over the life of the contract shows up on my credit report as if it were an outstanding balance such as a credit card balance. What I am trying to do is pay off my credit card debt so that it will not affect me when I apply for a home or investment property. My credit score is not a problem at all but I know that lenders consider the outstanding debt on your credit history and your debt to income ratio. Anyone have any idea?

[terry1156]

I'm not an expert in this area, but I would assume that it would appear much like a loan would in your credit report for the time of the lease.

[macticous]

It sounds very logical that it will look like an extension of credit since other creditors can reason that it is an obligation that can affect my ability to pay other obligations. I was hoping that since a lease works a bit different than a contract to buy, the effect would be that it would not show on my credit history. But, I think I am a bit optomistic because a leasing company wouldn't expose itself to so much risk without informing itself of its customers. I'll keep investigating the matter but I think you are probably right Terry. Thanks.